The U.S. Department of Labor says the title insurance company CEO who committed suicide misappropriated more than $62,000 from employee retirement accounts, according to a federal lawsuit.

Richard Talley of American Title Services Company in Greenwood Village allegedly deducted more than $111,000 from employee paychecks for company-sponsored retirement accounts, but more than half of it never reached those accounts.

The misappropriation had gone on since 2008, the Labor Department said in a lawsuit filed Friday in U.S. District Court in Denver. It is unclear how many employees are affected.

Talley, 56, killed himself with a nail gun in the garage of his Aurora home on Feb. 4, the day he was to meet with officials from a Texas insurance company for which Talley's company sold policies.

The meeting was over what turned out to be about $2 million in escrow-account discrepancies, money that was to be used to settle real estate transactions.

That company, Title Resource Guaranty Corp., says American Title's books were doctored to cover up the shortfall, and has sued Talley, his widow, Cheryl, and others to recoup the funds.

Cheryl Talley, American Title's co-founder, has not been reachable and has sold the family's Aurora home. She has denied in court records any knowledge of the company's financial troubles or the alleged actions of her husband.

Federal officials say Richard Talley had control over the American Title Services Retirement Trust, which administered the retirement plan for its employees, and had unfettered access to the cash.

Employees said they took their concerns to federal authorities last year. Employees and industry watchers say on the surface the company appeared successful and growing, but its finances turned out to be in shambles.

A state grand jury and the Colorado Division of Insurance have been investigating since Talley's death.

David Migoya: 303-954-1506, dmigoya@denverpost.com or twitter.com/davidmigoya

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